Contingency Recruiting

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What is contingency recruiting? 

Contingency recruiting is a form of recruitment where an organization hires a recruiting agency or contract recruiter to find job candidates for a vacant position. In this setup, the recruiting agency or contact recruiter only earns a fee when a candidate that they endorsed is hired by the organization. The fee is a percentage of the salary of the position that was filled which is usually 20%. 

How can contingency recruiting be useful for organizations? 

Contingency recruiting can be helpful for companies in various ways. To begin with, it is useful for companies who do not have in-house recruiters. This kind of setup also poses a minimal financial risk because the company does not have to shell out money if there is no successful placement made by the agency. Additionally, contingency recruiting typically works well in filling positions that do not necessarily need advanced or high-level skills and are not senior-level or executive roles. 

What are the potential drawbacks of contingency recruiting? 

The primary possible disadvantage of contingency recruiting is that there is no guarantee that the recruiting agency or contact recruiter can endorse suitable candidates. Since they are paid per successful hire, there is a possibility that the agency will send numerous candidates who may not necessarily be a good fit for the position. 

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